DeepSeek, a Chinese AI startup, has made headlines by surpassing OpenAI’s ChatGPT and climbing to the number one spot on the U.S. App Store’s free apps list. This unexpected rise has raised eyebrows in the tech world, positioning DeepSeek as a major competitor in the AI space.

DeepSeek’s Rapid Growth

• Launched on January 20, 2025, DeepSeek’s R1 model has propelled its app to global popularity.

• It is now the number one free app in 51 countries and ranks in the top ten in 111 countries on the App Store.

• On Google Play, DeepSeek has achieved top ten rankings in 18 countries.

What Makes DeepSeek Different?

• DeepSeek’s R1 model competes with leading AI models while being trained on significantly fewer resources.

• Unlike OpenAI’s models, DeepSeek utilized Nvidia H800 chips—a restricted version of the H100—to comply with U.S. export regulations.

• This proves that high-performance AI models can be built even with limited hardware resources.

Market Impact

• DeepSeek’s success has influenced the stock market, particularly affecting Nvidia.

• Nvidia’s stock recently experienced a 17% drop, wiping out nearly $600 billion in market value—one of the largest losses ever for a U.S. company.

Challenges and Controversies

• DeepSeek faced a DDoS attack, forcing the company to restrict new sign-ups to Chinese phone numbers. However, existing users remain unaffected.

• The AI model has also faced censorship concerns, particularly on politically sensitive topics in China, such as the Tiananmen Square protests.

Global Implications

• DeepSeek’s rise is being closely watched by major U.S. tech companies, including Apple, Google, and Microsoft.

• The ability of a Chinese AI model to compete with Western alternatives, despite hardware limitations, signals a shift in AI development trends.

Final Thoughts

DeepSeek’s unexpected surge to the top of the App Store highlights the rapid evolution of the AI industry. While its technological advancements are impressive, its market influence and censorship concerns make it a controversial yet significant player in the AI landscape.

Main Image Credit: Croma.